eCommerce is one of the pioneers of the digital economy, where advanced technology and industrialization applied to assist the business cycle, increase the efficacy of the company’s logistic department, distribution channels, and competition level.
On 15/05, the Vietnamese Prime Minister has announced the publishment of the National development plan of Vietnam eCommerce during the period 2021-2025. This plan act as a guideline compass for future advancement and has to be closely linked with strategies and policies on proactively participating in Industry 4.0.
So what are the details on this development plan of Vietnam eCommerce? Together with Boxme, let’s find out more information about this new plan.
1. E-commerce a fierce competition.
Based on a recent report of the Vietnam eCommerce Association (VECOM), it is forecasted that the growth rate of Vietnam eCommerce in 2020 still on the roll with 30% and the market size coming up to 13 billion USD. Additionally, with the data collected from e-Conomy SEA 2018 by Google and Temasek, by the year 2025, the size of Vietnam eCommerce will reach roughly 33 billion USD. This equates to the fact that Vietnam will stand in the 3rd position in SEA, only behind Indonesia ( 100 billion USD), and Thailand (43 billion USD).
VECOM predicts the growth rate of Vietnam eCommerce remain at the rate above 30% up till 2020, together with the scale exceeding over 15 billion USD.
Heading to the year 2025, Vietnam eCommerce is on the roll with a GDP rate reaching 10%, which is higher than the highest growth rate country -Indonesia (7.7%). Vietnam has shown its high determination to the process of national digital transformation and actively participated in the 4th Industrial Revolution.
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2. General objectives
Here are the overview and general targets of the national eCommerce development plan for 5 years from 2021-2025
• Provide necessary support, locally promote and enhance the application of eCommerce in nationwide enterprises and communities
• Strongly assist and push productivity and the widespread of eCommerce in smaller cities. Narrow in locational gaps.
• Encourage positive, healthy advancement of eCommerce’s development. Prompt competition spirit reasonably.
• Stimulate international and national customer consumption market by the means of eCommerce application and cross-border transactions
• Set a future target of becoming the top 3 leading eCommerce in the Southeast Asian region
Here are 5 primary yet comprehensive headlines of necessary steps that the Vietnamese Government has set up to follow in the next 5 years. We will now dive into more details, particular figures and numerical targets should be achieved for the most extensive development.
3. Specified figure, targets that Vietnam eCommerce should achieve by 2025
To implement the comprehensive eCommerce development plan during the period 2021-2025, the Hanoi Department of Industry and Trade has published detailed figures to follow:
a) Enhance Vietnam eCommerce’s scale with desired targets:
- 55% of the Vietnamese population joining online shopping with average shopping value reached 600USD per person per year
- B2C eCommerce sales are expected to rise by 25% per year raging 35 billion USD and accounting for 10% of total retail sales of consumer goods and services.
- The desired amount of 50% national SMEs to commence the first debut on Vietnam eCommerce marketplaces.
- 80% of the total website have integrated online ordering figures and online payment.
b) Infrastructure of ancillary services for e-commerce
- Non-cash payment target to reach 50%, in which payment is made through payment intermediary service providers score at 80%
- The average cost of delivery, finishing order, and last-mile order accounts for 10% of the product cost.
- 70% of online transactions in the eCommerce platform has online invoices
c) Regarding the eCommerce development among economic regions
- Cities other than Hanoi and Hochiminh City take over 50% of B2C Vietnam eCommerce transactions.
- 50% of communes and equivalent administrative units nationwide have traders selling goods or providing services online
d) Regarding the application of eCommerce in enterprises
- 40% of national enterprises participate in eCommerce activities on mobile applications.
- 70% of units, the business providing electricity, water, media services embark on online contract with customers
e) Potential human resources development plan for Vietnam eCommerce
- 50% of higher education and vocational institution deploy training in eCommerce
- 1,000,000 enterprises, business households, and state management staff are allowed to participate in training courses on eCommerce application skills.
4. A quick summary
Vietnam enjoys numerous advantages that aid the growth of the eCommerce market. Especially, moving forward from the global pandemic Covid-19, in the report written by Google and Temasek of the eCommerce market in the ASEAN region has stated the potential growth of Vietnam eCommerce at 43%. Which enable Vietnam to step up to be the most fast-moving eCommerce market in SEA.
To assure Vietnam eCommerce’s growth during the period 2021-2025, the Ministry of Vietnam must execute an elaborative development plan for Vietnam eCommerce to strictly follow.
>> Read more: Why Vietnam is your next E-commerce stop